The company started making some low-end iPhone models at a plant in Bangalore, India, last year, but local sourcing requirements and tax regulations have thus far prevented it from opening Apple Stores in the country.

The new tariffs will not have much of an effect on the market's top players, such as Apple's arch rival Samsung and current market leader Xiaomi. Both companies, which together accounted for nearly half of the 132 million smartphones sold in Indialast year, already make most of their devices in the country.

Around 75% of all cellphones sold in India last year were assembled in the country, said Tarun Pathak, an analyst at Counterpoint Research.

"It is the rest of the 25% who will be impacted," he added.

The latest iPhones and Google Pixel 2sare too expensive for most Indians, many of whom earn less than $2,000 a year. The new duties will make them even more expensive, Pathak said, as suppliers hike prices to make up for the higher import cost.